Mortgage rates for 30-year fixed loans held firm, while 15-year fixed rates and 5/1 ARMs eased a bit, according to a NerdWallet survey of mortgage rates published by national lenders Monday morning.
Friday’s U.S. employment report saw “impressive” job growth but annual wage increases “stuck” around 2.5%, according to Doug Duncan, chief economist at Fannie Mae. However, Duncan believes the Federal Reserve will stick to its plan to continue gradually raising short-term interest rates.
“All in all, the report signals no sense of urgency for the Fed and should give the Fed every reason to stay the course of a gradual monetary policy normalization, as it has been telegraphing to the markets,” Duncan said in a statement. “We now expect the Fed to announce its policy to taper the balance sheet in September and hike the fed funds rate once more this year, in December.”
“Tapering” the balance sheet means the Fed will reduce its portfolio holdings of government bonds. That, along with increasing short-term fed fund interest rates, could compel mortgage rates to move even higher by the end of the year.
MORTGAGE RATES TODAY, MONDAY, JULY 10:
NerdWallet daily mortgage rates are an average of the published annual percentage rate with the lowest points for each loan term offered by a sampling of major national lenders. APR quotes reflect an interest rate plus points, fees and other expenses, providing the most accurate view of the costs a borrower might pay.
Hal Bundrick is a staff writer at NerdWallet, a personal finance website. Email: firstname.lastname@example.org. Twitter: @halmbundrick.